Image source: Pexels
 

Sienna Senior Living Inc (LWSCF) is one of the largest owners of seniors housing, the largest licensed long-term care operator in Ontario, and a provider of services across the full continuum of care.

The firm operates solely within Canada. The company is comprised of three business segments, LTC Business, Retirement, and Other.

LTC business division consists of approximately 34 LTC residences in the Province of Ontario, eight seniors' living residences located in the Province of British Columbia, and the LTC management services business. The group derives a majority of its revenue from this LTC segment.

The company was formerly known as Leisureworld Senior Care Corporation and changed its name to Sienna Senior Living Inc. in May 2015.

Sienna Senior Living Inc. was founded in 1972 and is headquartered in Markham, Canada.

Three key data points gauge Sienna Senior Living Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

LWSCF Price

Over the past year, Sienna’s share price dropped about 13.4% from $10.06 to $8.71 as of Tuesday’s market close.

If Sienna’s stock trades in the range of $7.00 to $12.00 this next year, its recent $8.71 share price might rise to $9.40 by next year. Of course, Sienna’s price could drop about the same $0.69 amount or more.

My upside estimate of $0.69, however, is in line with Sienna’s average annual share price increase over the past three and one-half years.
 

LWSCF Dividend

Sienna Senior Living Inc. has paid variable monthly dividends since June 15, 2011. Sienna’s most recent monthly dividend, payable September 15th to shareholders of record August 30th is $0.0575 USD. Its annual dividend payout of $.69 is projected to yield 7.92% per Tuesday’s closing price.
 

LWSCF Returns

Adding the $0.69 anticipated annual dividend to Sienna Senior Living Inc’s estimated $0.69 possible price upside reveals a $1.38 potential gross gain per share for the coming year.

At Tuesday’s $8.71 closing price, a little over $1000 would buy 115 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.09 per share.

Subtracting that maybe $0.09 brokerage cost from my estimated $1.38 gross gain per share makes a net gain of $1.29 X 115 shares = $148.35 or about a 14.75% net gain.

This may be the time to pounce on Sienna shares. But beware, Sienna Senior Living Inc. is a Canadian care provider doing business in a well-regulated medical environment. Furthermore, the estimated $79.20 dividend from $1000 invested comes in at just over nine times the recent $8.71 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

More By This Author:

Stock Analysis: Extendicare Inc.
Stock Analysis: Schneider Electric
Daily Stock Analysis: Mullen Group